PLUS Loans come from one of two sources:
- Direct PLUS Loans are made by the U.S. Department of Education. You repay a Direct PLUS Loan to the U.S. Department of Education.
- Federal PLUS Loans are made through Federal Family Education Loan (FFEL) Program. While FFEL funds come from private lenders, such as banks and credit unions, they are subsidized and supported by the U.S. Department of Education. You repay a FFEL PLUS Loan to the private lender that made the loan or to its designated agency.
Whether you receive a Direct or FFEL PLUS Loan depends on the program in which your school participates. In either case the terms of the loan (loan amounts, interest rate, and other benefits) are generally the same.
The school applies PLUS loan funds toward your child’s educational costs such as tuition, fees, and room and board. If any loan funds remain after school charges are paid, you will receive the remaining amount from the school, unless you authorized the school to release the funds to your child. Any funds you or your child receives must be used to pay the child’s educational expenses.
General Program Requirements
To qualify for this program, you must:
- Be a parent of a dependent postsecondary student who is working toward a postsecondary degree or certificate.
- Not have an adverse credit history.
